Real Estate Information Archive

Home Sale Prices in Central Pennsylvania September 2010

The Greater Harrisburg area real estate market continues to be somewhat of a contraction. The sales number for September 2010 are down 35% compared to September 2009, but the average sales price has increased during the same time frame. So what does that mean to the current buyers and seller of real estate? First, there is plenty of concern about the economy and the impact on personal finances, job security and the values of homes. Second, valuations on many homes are down from the peak of the market but when compared to many areas, this geographic area has held its own and when you are reading about the real estate market many reports give a national versus a local perspective. Third, we will probably never see the year to year appreciation that we experienced, but this region has been relatively stable over the last thirty years and we will begin to see some appreciation, not great, within the next twelve months. So if you are looking to buy or sell, remember valuation is primary and when looking to purchase a home today’s mortgage interest rates, I was quoted 4.125% last Thursday for a thirty year mortgage, are at historic lows. So even if you are not in the market to purchase a home, you may want to seriously consider refinancing your current mortgage and saving some money.

One last important piece of information. If you find yourself in a position of being behind on your mortgage, please click on the following link which provides numerous sources of assistance Mortgage Financing Options That May Save Your Home. And if you need any additional information please contact me at Don@DonRoth.com.

Again, if there is any real estate information you need, please contact me at your convenience.

With the change in the seasons, we are beginning to experience a change for the positive in the real estate market in the area. As I have said previously, the change is not going to be a quick fix but rather a slow improvement in the market. But in comparison to many other areas of the country, we are in much better condition and this should continue going through the rest of the year.

The number of sold homes decreased by 3% in 2010 compared to 2009, but this is much improved over the 20% decrease we experienced in 2009 compared to 2008. And the average sales price for the same period decreased by less than 1% to $179,057. Although the days on market increased to 98 days, we are now back to what I call a normal market that was common prior to 2003.

As with last year, the mortgage rate environment is still extremely favorable to buyers, although rates on a 30 year mortgage have increased slightly to 5.25% compared to 5% in 2009. It is my opinion that these rates will continue to increase gradually as we go through 2010. But be sure that lenders have plenty of money available for qualified borrowers and that again should continue throughout the year. So what should a potential home buyer do in this environment, my opinion is take advantage of the low rates and the plentiful inventory that is in the market. There are approximately 4900 residential units available for sale at this time. In conclusion, we are moving onward and upward in the area and take advantage of the positive situation while it is available.

The housing statistics for the suburban Harrisburg, Pennsylvania are in and the results show that there is still some decline in real estate sales in the area. The number of homes sold in 2009 declined by 20% compared to the same period in 2008, and the area saw a decrease in the average sales price of 7% in the same period. The sales results cover all of Dauphin (except Harrisburg), Cumberland and Perry Counties and portions of Lancaster, Lebanon and York Counties. These results continue the trend the area experienced for the last half of 2008.

But there is good news on the horizon since the number of pending sales (sold although not yet settled) increased from December 2008 to the end of January 2009 by approximately 9%. And many of us are seeing increased buyer activity and additional properly priced homes come onto the market. In addition, there is some positive news out of Washington to assist both home buyers and sellers for 2009. In November 2008, The National Association of Realtors® put forth a recommendation that the $7500 tax credit for first time home buyers be expanded to all home buyers and that the tax credit be replaced with just a plain credit, meaning that there would not be any repayment vehicle attached for any buyer. This idea has taken form in Washington and it has a good chance of becoming part of the President’s Stimulus Package working its way through Congress. And there also appears that Congress may look favorably on crafting a mortgage program where mortgage rates could go as low as 4 or 4 1/2% this year.

So when looking into the future I see better times ahead for both home buyers and home sellers. It will not happen overnight but the landscape is looking much brighter for people that are looking into real estate. STAY TUNED.

The following question was posted on Trulia Voices on  January 7, 2009 and the following is my answer to the question

K asked. I am moving to Cumberland County, PA (Boiling Springs/ Carlisle) and would like to be a first time home owner. Unfortunately my job is a two year term. Is it smart to buy a house, as I've heard I would lose money, especially with houses depreciating?

K. Great question. Most people would say no to you purchasing a home and then reselling it in two years. My perspective is there are opportunities to purchase a home and not lose any money within your time frame. In most real estate cycles in recent years, most buyers that were looking to sell in two years were people that were transferred into the area and had most, if not all of their costs paid by the employer, so they had very little personal financial loss to be anticipated within that time frame.

My recommendation is to review the price range of homes that you are considering and calculate your total monthly housing costs and compare that to the amount you may pay in rent for the time frame. Yes, there are going to be costs in purchasing a home, but there possibly may be some tax benefits, not associated with the $7500. tax credit that may make it beneficial to you to purchase a home rather then renting.

The local market has seen a small decline in the average selling price in 2008 compared to 2007, but in many areas of our market AND a small increase in the selling price compared to 2006. I would anticipate a rebound in our local real estate market in 2009 when you look at some of the home values coupled with the extremely attractive interest rate environment we have right now. Good luck in your search and if you need any additional information, please contact me. Thanks, Don. Don@DonRoth.com

First, as we approach Thanksgiving, I want to wish the happiest of times to you, your families and your friends. We have been through some interesting times in the last year and it appears that this trend will continue for the foreseeable future. Let us count our blessings and look for a brighter tomorrow.

I am sure many people saw the news that the Federal Reserve enacted a second large multibillion dollar initiative in hopes of stimulating the housing market for both buyers and sellers in this challenging market. What does that do immediately for you? Well, the initial reaction was to reduce current 30 year mortgage rates down by about .75% or a savings of $72 a month on a $150,000 mortgage or a yearly saving of $864 a year. Not a lot but better in your pocket than the lenders.

If you are considering the purchase of a home, this may be the market of opportunity for you now and for the next few months. While no one can accurately predict the bottom of a market, many will be upset that they waited too long to buy a home. If you are a current owner, you may say that your home isn't worth as much as last year and that may be true. However, if you are considering moving up the home, what you are looking for isn't worth as much as it was last year. There are many opportunities that will be available and if you are considering a move, you should begin your planning now so you are adequately prepared. Just remember the Greater Harrisburg, Carlisle and Hershey real estate markets have been one of the most stable market in the nation - put that to your advantage.

The real estate market is really bad and no one is able to sell their house. Sellers are losing money on their homes or every home that is selling is a foreclosure, and those homes are depressing the values of the homes around it. How many times have we seen something similar in the paper or on the nightly news?

Well the market in Central Pennsylvania from Carlisle to Hershey and in Dauphin, Cumberland, Perry and northern York Counties has changed, but the news isn’t all bad. Yes, the number of sold homes has decreased in 2008 compared to 2007 and 2006. The number of sold homes has decreased by about 30% during the mid-May to mid-June 2008 time period and the average sales price had declined $203 per home, but the AVERAGE SALES PRICE in 2008 is HIGHER by about $3000 compared to the same period of 2006. And although sales are down right now, this trend will reverse itself in time. Yet when we see the numbers of 20% decrease or more of valuations in states like California, Arizona, Nevada and Florida, the above numbers give us the realization that local Central Pennsylvania market will rebound on firm footing. “It’s a ‘back-to-basics’ market,” says PAR consulting economist Austin Jaffe, Ph.D., chair of the Department of Insurance and Real Estate at the Smeal College of Business at Penn State University. “The era of easy money and exotic mortgages never took hold among homebuyers in the Commonwealth, so prices in Pennsylvania never increased as much or as quickly in other markets. There’s no reason to expect that prices will fall as much or as rapidly here.” “This is the beginning of a new period in the housing market - or a new ‘old’ period where consumers buy homes to live in and use as long-term investments, not as a get-rich-quick scheme,” adds Jaffe.

This real estate market, as far back as I can remember, never followed the substantial increases that some national markets experienced and therefore never experienced the falling of the cliff syndrome when these or similar markets corrected. Whether you live in Derry Township, the city of Harrisburg, Hampden Township or Lower Paxton Township, you will see a rebound in activity and an increased valuation for your homes in the future. I have been asked by many and they say that they want to move up to a larger home, but the value of their home may have decreased. That may be true. However, before they could purchase the next home, they had to sell their existing home but they still had to find a buyer. Now despite what you hear that there is no available credit for home buyers – FALSE – the lenders along with some of the governmental agencies have or are working on new programs to assist buyers in arranging financing packages for buyers to purchase homes. The credit standards are higher than in past years, but there is money available for you and your family – so take advantage and don’t let the negativity of the press prevent you from buying your next home. You and I cannot stop the constant beat of the national market, but I will on a regular basis give you the real news in our local market.

If you have any real estate related questions, or if you are considering buying or selling a home, do not hesitate to contact me. I can be reached at 717-579-2879 or via email at don@donroth.com or view the information at www.DonRoth.com.